Process to follow in case a Customer / Sub-Reseller Payment Charges Back or Bounces back

If your Customer/Sub-Reseller made a Payment which bounced back, or Charged back, you may need to follow some steps to reflect this in their Account. These steps only need to be followed if you have Credited the Customer/Sub-Reseller with these funds.

On an immediate basis, you will need to Add the following Debit Notes to their Account:

Add a Debit Note to their Account for the initial funds credited to their Account. 1

For instance, when the funds were received, a Receipt of the following type may have been created -

Receipt ID: 1
Amount: USD 100 (INR 5000)

The above example assumes that your Selling Currency is USD and your Accounting Currency is INR.

In this case you would add the following Debit Note to the Customer/Sub-Reseller Account -

In the above example we have maintained the same Amounts as in the Receipt. It is important that the Debit Note consist of the same amount in Selling Currency as the Original Receipt. This is because you have credited that much spending capacity to the Customer/Sub-Reseller which you need to revoke. For the sake of ensuring no Forex Gain/Loss in this transaction, it is always better to ensure that both the Selling Currency Amount and the Accounting Currency Amount are the same.

Of course if your Selling Currency is the same as your Accounting Currency you will not face this issue.

In the above example, you may note that a Debit Note has been raised to the tune of USD 5 (INR 300). There are a few important things to note out here -

Firstly, it is you who decides the amount of charges you wish to levy your Customer/Sub-Reseller for this particular Chargeback/Bounceback. You may choose to not levy the same at all.

Secondly, the rate at which you choose to levy the Debit Note for the charges may be the current rate. The earlier Debit Note may have been passed by you at the earlier rate in order to ensure that your Accounting is perfect, however the current charges related Debit Note could be passed at current or different rate from the previous Debit Note. Again this is your prerogative.

When you are raising the above Debit Notes, it will offer you the option to set these as Greedy. A Greedy Debit Note gets automatically settled,

if there are Funds available in your Customer/Sub-Reseller's Debit Account, or

when your Customer/Sub-Reseller adds Funds in his Debit Account, or

at the time your Customer/Sub-Reseller starts paying for another Invoice/Debit Note, he is prompted to also pay for any Greedy Invoice or Debit Note.

You may need to follow up with your Customer/Sub-Reseller in order to recover this Payment for these Debit Notes from them. It may be a good idea to Lock/Suspend their Orders or Suspend their access, if required, for collection.

If eventually you realise that this amount is irrecoverable you may have to write it off to Bad Debts.